Page 11 - ICAI UAE TAX UPDATE_JULY 2024

5 OTHER TAX UPDATES

5.1 GCC Updates

The recent tax updates from the GCC region include key 3. Exclusions for Group Companies: Group companies
developments from the Kingdom of Saudi Arabia (KSA), with a unified Zakat declaration must disclose
Kuwait, Oman, and Bahrain. transactions with companies they own less than 100%.

Following are the key updates: Custom Duties Exemptions: On July 5, 2024, ZATCA has
updated the Rules of Returned Goods Customs Duties
Kingdom of Saudi Arabia (KSA) Exemptions.
E Invoicing: The Zakat, Tax and Customs Authority The new amendments aim to update the requirements
(ZATCA) has set the criteria for the Fourteenth Wave of for exemption of the returned goods, and address the
the E-invoicing “Phase II - Integration Phase,” targeting challenges pertaining to the temporarily exported goods
taxpayers with VAT-relevant revenues exceeding SAR 5 to complete their manufacture or repair abroad.
million in 2022 or 2023. These taxpayers must integrate
with the Fatoora platform by February 1st, 2025. The updates also included the cancellation of the
value restrictions on returned goods, where an
This phase will be rolled out in waves, with ZATCA exemption request can be submitted for all returned
providing six months’ notice before each wave’s start. The goods, irrespective of their value, in accordance with
move continues the Kingdom’s digital transformation the provisions of the Common Customs Law and its
and builds on the success of Phase One. Implementing Regulations.

Transfer Pricing: ZATCA has announced major updates
to its Transfer Pricing guidelines, including several key
changes:

1. Advance Pricing Agreements (APA): Expanded
procedures and scope for APAs, offering clearer
frameworks for future transactions.

2. TP Adjustments in Accounting Books: Guidance on
incorporating transfer pricing adjustments directly into
accounting records.
www.icaidubai.org 11

UA E TAX UPD ATE NEWSLET TER ISSUE 04 - July 2024 ISSUE 04 - July 2024 UA E TAX UPD ATE NEWSLET TER